Posted on 11/19/2020 7:43:27 AM PST by SeekAndFind
Fidelity, the largest 401(k) provider in the US, has just released its third-quarter analysis titled "Building Financial Futures" that outlines the number of 401(k) millionaires hit a new high during the pandemic, reported WaPo.
Fidelity said client balances of more than one million dollars for 401(k) accounts increased to 262,000, up 17% from the previous quarter. The number of IRA millionaires also increased to 234,000, up 15% in the quarter. Both breached the highs recorded in4Q19 when Fidelity reported 233,000 401(k) millionaires and 208,000 IRA millionaires.
Market performance was primarily the reason for increases in 401(k) account balances in 3Q20. Despite the market plunge in October, from July 1 to Sept. 30, soaring main equities indexes boosted retirement balances, a spokesman for Fidelity told WaPo.
Despite the virus-induced downturn, resulting in the decimation of small and medium-sized firms, along with millions of job losses, the recovery has primarily been a Federal Reserve induced bonanza, one where trillions of dollars were pumped into capital markets by the central bank, igniting stock prices to record highs.
This all suggests that the Fed is unintentionally worsening economic inequality by providing the most help to capital markets while leaving the working-poor to fend for themselves with lousy government stimulus checks that expired at the end of July.
Here comes the “income inequality” drum beat. Look for someone in the “squad” to purpose additional taxes on these “obscenely wealthy” people who need to be forced to share at the point of a government gun.
It may look like economic inequality; but what it amounts to is priority/decision-making inequality.
China Joe and the Ho have big plans to tax them and change all that!
A million in a 401k isn’t wealthy.
Zero Hedge telling us what we knew to be coming down the pike with Democrats in power.
Time to penalize those who know what deferred gratification means and plan for their future and to give a bit of the takings to the ‘poor’ and keep the rest for spending on favored projects or just plain graft.
Exactly!
Not worry - the Biden presidency will take them over like Hillary wanted to.
These jackasses will steal the food right out of your mouth and get away with it too. They’re animals.
Vapor money; if the lefties take control of the government...POOF, gone in a puff of tyrannical good intention faerie smoke.
In our younger years, my wife and I did without many of the luxuries that we saw others in our generation buying so that we could shovel as much into our 401K as possible. Now that we’re millionaires, the people that blew (or still blow) their money on the latest crap want to tell me it’s unfair. Well screw them!
You are correct. It is not rich. It is the savings you need to live off of that when you retire. It is in lieu of a pension!
It took me 30 years of saving to accumulate what I have in my 401K. I have little doubt that it will be made to disappear with the stroke of a pen. There’s too much money in these pots for democrats to control their lust to seize other peoples money.
So tell me: Are they or are they not coming after yours? 2008-Someone suggested a government takeover of the plans with a 3.5% return as if they could guarantee it.
If you add up what a government worker gets in pension payouts, they are millionaires too.
No doubt, Democrats will be looking at OPM (401K) to fund the failing Social Security.
Question: many State government workers pay into PERA instead of Social Security and the payout is very generous. Will the State PERA funds be subject to the same looting if/when it happens to people’s 401K plans? Well, PERA plans will probably be broke, too along with Social Security. So maybe it is moot.
Easily. Well over a million if the retiree lives long enough.
I wonder what else reached new heights during the pandemic?
Out of wedlock children?
Single mothers?
Alcohol addiction?
Drug addiction?
Dropping out of school?
Worthless degrees?
Living beyond your means?
etc.
Oooh.
Another salvo in the attempt to confiscate 401ks and IRAs.
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